Posted to The Age (13/12/2011) on 15/12/2011 at 5:00 AM
Commenting on "Where is the housing market headed?"
http://theage.domain.com.au/blogs/talking-property/where-is-the-housing-market-headed-20111213-1osf0.html
I seek opportunity by predicting dooms. There is nothing to worry about if everything is hunky-dory, until things get over-heated. Buying during good times give low to negative returns; one may even lose the initial capital if the property is disposed early. If one is greedy and does not understand that property is a very long term investment, he is no wiser than those who invest in the shiniest, fastest and latest car.
When there is shortage of food, we grow food. When there is insufficient housing, we build more houses or multi-storey buildings. However, growing food and building dwellings need one crucial thing, namely land. When land becomes scarce, we cannot grow land! Scarcity pushes price up!
Many baby boomers had the opportunity to work two or three jobs during their younger days, and have experienced at least two recessions prior. They are not spendthrift like the younger generations, and have tucked away a fair amount of money. Some baby boomers who are ready to hang up their boots may not want to invest in real estate directly, but give away their money to their offspring as deposits or partial payments towards their first homes. Invariably, this provides an impetus for stimulating the next buying upswing.
As long as external influences do not have direct impact on an Australian citizen’s financial position, he will continue to live his life style and invest in property. However, if the impact is negatively drastic, real estate industry will slide to the point until cash-up opportunists come along to grab a good deal!
Commenting on "Where is the housing market headed?"
http://theage.domain.com.au/blogs/talking-property/where-is-the-housing-market-headed-20111213-1osf0.html
I seek opportunity by predicting dooms. There is nothing to worry about if everything is hunky-dory, until things get over-heated. Buying during good times give low to negative returns; one may even lose the initial capital if the property is disposed early. If one is greedy and does not understand that property is a very long term investment, he is no wiser than those who invest in the shiniest, fastest and latest car.
When there is shortage of food, we grow food. When there is insufficient housing, we build more houses or multi-storey buildings. However, growing food and building dwellings need one crucial thing, namely land. When land becomes scarce, we cannot grow land! Scarcity pushes price up!
Many baby boomers had the opportunity to work two or three jobs during their younger days, and have experienced at least two recessions prior. They are not spendthrift like the younger generations, and have tucked away a fair amount of money. Some baby boomers who are ready to hang up their boots may not want to invest in real estate directly, but give away their money to their offspring as deposits or partial payments towards their first homes. Invariably, this provides an impetus for stimulating the next buying upswing.
As long as external influences do not have direct impact on an Australian citizen’s financial position, he will continue to live his life style and invest in property. However, if the impact is negatively drastic, real estate industry will slide to the point until cash-up opportunists come along to grab a good deal!
